Bollinger Bands
Technical AnalysisVolatility bands placed above and below a moving average. Bands widen during volatility and contract during calm periods.
Formula
Middle = 20-period SMA; Upper/Lower = Middle ± (2 × Standard Deviation)
Why it matters
Price touching upper band may indicate overbought; lower band oversold. Band squeeze often precedes big moves.
Indian example
Related terms
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